Does the Chicken Guy Addendum allow disclaiming reliance on statements made by the franchisor?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2025 FDD)
According to the 2025 Chicken Guy FDD, the addenda for California, Maryland, and New York franchisees explicitly state that no statement, questionnaire, or acknowledgment signed by a franchisee can disclaim reliance on statements made by Chicken Guy or its representatives. This provision overrides any conflicting terms in the franchise agreement.
Specifically, the California addendum reinforces this protection by stating that California law prohibits Chicken Guy from disclaiming or denying representations made to the franchisee, the franchisee's ability to rely on those representations, or any violations of the law. This ensures that franchisees in these states can hold Chicken Guy accountable for the representations made during the franchise sales process.
For prospective Chicken Guy franchisees, this means that any claims of misrepresentation or fraud in the inducement are not waived by signing the franchise agreement or related documents. This protection is particularly important as it allows franchisees to pursue legal remedies if they believe they were misled during the franchise sales process. This type of clause is not uncommon in franchise agreements, as many states have franchise laws in place to protect franchisees from overreaching by franchisors.